Generally, you cannot write off car repairs for a personal vehicle on your taxes. The IRS considers these costs personal expenses, which are not deductible. However, there are specific circumstances where you can deduct repair costs, primarily when the vehicle is used for business, charitable activities, medical transport, or as a rental property.
The most common scenario is business use. If you use your car for business purposes (e.g., as a self-employed individual, freelancer, or for a side gig), you can potentially deduct a portion of your repair costs. You typically calculate this using either the standard mileage rate or the actual expense method.
- Standard Mileage Rate: For 2023, the rate is 65.5 cents per business mile. This single rate covers all vehicle operating costs, including repairs, maintenance, gas, and depreciation. You don't track individual repair bills separately.
- Actual Expense Method: This involves tracking all actual car-related costs for the year—including repairs, oil changes, tires, insurance, registration, and gas. You then deduct the percentage of these total costs that corresponds to your business use. For example, if you drive 10,000 miles total and 6,000 are for business (60%), you can deduct 60% of your repair bills.
| Scenario | Deductible? | Key Consideration |
|---|
| Personal Vehicle (Commuting to a regular job) | No | Commuting is considered a personal expense by the IRS. |
| Business Use (Self-Employed) | Yes | Must track mileage and choose a deduction method. |
| Medical Transportation | Potentially | If travel is for essential medical care, you can deduct the mileage rate. |
| Charitable Work | Potentially | You can deduct 14 cents per mile for charity-related driving. |
| Rental Property | Yes | Repairs on a vehicle used exclusively for managing rental properties may be deductible. |
It’s critical to maintain meticulous records, such as a mileage log with dates, destinations, and business purposes, and to keep all receipts. If you have a home office and travel to a second work location, those miles may be deductible, but commuting from home to a primary workplace is not. For complex situations, consulting a tax professional is always recommended to ensure compliance with current IRS rules.
